Economic health at the start of 2020 set a foundation for Orlando’s office market that remains in a good position despite headwinds caused by the global COVID-19 pandemic. Nationally, the United States saw its longest-running period of economic growth before non-essential business was paused. Even with the slowdown in tourism, Orlando continues to see an uptick in local economy-boosting sectors, including defense and technology. Additionally, an increasing number of companies and individuals in the Northeast have eyes on Florida to escape denser urban markets and high state and local taxes, which bodes well for the Central Florida region. Fundamentals stay firm The pandemic significantly curbed a lot of new office leasing activity in Orlando in 2020. However, rents have not experienced a measurable decline to date. As of the second quarter, the total average rental rate was $24.92 full-service. Landlords are generally being patient and are not lowering rents or offering above-market concessions when negotiating new deals. Asking rents will likely stay flat for the coming months until the broader economy kickstarts again or the anticipated new sublease space hits the market and compels landlords to be more competitive. Total net office absorption for the Orlando area posted a negative …
TALLAHASSEE, FLA. — A public-private partnership between CTG Development Co. (CTG) and Florida A&M University (FAMU) has completed the development of a 720-bed residence hall on the university’s campus in Tallahassee. The new residence hall is Phase I of development on a larger project called Main Street Corridor, which will include a mixed-use building with multifamily units and retail, a new stadium and a field house upon completion. Finfrock is serving as the architect of record and the design-build contractor for the project. The university held a ribbon-cutting ceremony Wednesday, Sept. 30. FAMU is holding classes in a hybrid format for the fall 2020 semester.
DAVENPORT, FLA. — Summit Contracting Group has broken ground on Siena Pointe, a seniors housing community in Davenport. Siena Pointe will be a four-story, wood-frame building situated on a seven-acre site. The property will feature 163 units of seniors housing in a 194,127-square-foot building. The community will be situated near Interstate 4 and U.S. Route 27, 33 miles southwest of downtown Orlando. Construction is slated for completion in fall 2021. The developer is Eastwind Development LLC, and the architect is Forum Architecture & Interior Design Inc.
ORLANDO, FLA. — CIM Group has provided a $72.9 million construction take-out loan for SunTrust Plaza at Church Street Station. The new 28-story, 209,000-square-foot office building is located in downtown Orlando. The borrower, a partnership between Lincoln Property Co. and Mason Capital Partners, delivered the asset earlier this year. Truist Financial Corp., formerly SunTrust Bank, occupies 43 percent of the building through 2030. The asset was 84 percent leased at the time of financing.
SARASOTA, FLA. — A joint venture between Miami-based Limestone Asset Management and Orion Real Estate Group has purchased two retail properties in Sarasota for $15.5 million. The properties are located at 362 and 371 St. Armands Circle on Lido Key, four miles west of downtown Sarasota. French pastry shop Le Macaron, fashion retailer Breezin’ Up and women’s clothing store Sahara occupy the property at 362 St. Armands. Tommy Bahama occupies the space at 371 St. Armands. Florida-based Ocean Bank provided acquisition financing to the buyers. The seller(s) was not disclosed.
TALLAHASSEE, FLA. — Boutique National LLC has negotiated the $8.3 million sale of four office buildings within Woodcrest Office Park in Tallahassee. The buildings total 89,284 square feet and are located at 323-325 John Knox Road, three miles north of downtown Tallahassee. At the time of sale, the assets were leased to 26 tenants. Nick Ganey, Tommy Szarvas and Estevan Lamas of Boutique National represented the buyer, an undisclosed private investor, in the transaction. Jimmy Nystrom of NAI Talcor represented the seller, an undisclosed limited liability company.
JACKSONVILLE BEACH, FLA. — Whole Foods Market will open a 40,000-square-foot store in Jacksonville Beach on Oct. 7. The new grocery store will anchor Pablo Plaza, a 156,755-square-foot shopping center located at 1822 S. Third St., 22 miles east of downtown Jacksonville. Pablo Plaza’s other tenants include Marshalls, HomeGoods, PetSmart and Office Depot. Jax Daily Record reports that J. Raymond Construction Corp. is the general contractor, CPH Engineering is the civil engineer and ELM | Ervin Lovett Miller is the architect. Jacksonville-based Regency Centers leases the property on behalf of the landlord and affiliate, New York-based Equity One Corp.
HIALEAH, FLA. — CTO Realty Growth has acquired Westland Gateway, a 108,000-square-foot shopping center in Hialeah, for $21 million. Aldi, dd’s Discount, Ross Dress for Less and Bed Bath & Beyond occupy the property. Westland Gateway is located at 1460 W. 49th St., 15 miles northwest of downtown Miami. Daytona Beach, Fla.-based CTO Realty purchased the asset through a 1031 exchange. The seller was not disclosed.
PALM BEACH GARDENS, FLA. — Gatsby Enterprises has acquired DiVosta Towers, a two-building office campus in Palm Beach Gardens, for $80 million. The buildings comprise 220,000 square feet and offer 889 parking spaces. The buildings also feature 10-foot ceilings, floor-to-ceiling windows, car charging stations and a full-time concierge. The seller, Gardens Corporate Center LLC, which is an affiliate of DiVosta Investments, delivered the campus in 2019. The asset was 70 percent leased at the time of sale to tenants including JP Morgan and Comiter, Singer, Baseman & Braun LLP. The New York City-based buyer has hired Jon Blunk of Tower Commercial Real Estate to oversee leasing for both buildings. DiVosta Towers is located at 3874 Kyoto Gardens Drive, 12 miles north of downtown West Palm Beach.
JACKSONVILLE, FLA. — Summit Contracting Group has broken ground on Lofts at Murray Hill, a 117-unit apartment complex in Jacksonville’s Murray Hill neighborhood. Communal amenities will include a fitness center, club room, resident lounge and a dog walk area. The four-story community will also offer 11,000 square feet of ground-level retail space. Designed by Group 4 Design Inc., Lofts at Murray Hill is located at 840 Edgewood Ave. S., five miles southwest of downtown Jacksonville. The developer, The Vestcor Cos., expects to deliver the property in fall 2021. The mixed-income property will offer units at market rate, and for workforce and affordable housing.